The Nigerian Content Development and Monitoring Board (NCDMB) has signed an equity investment agreement with Duport Midstream Company for the establishment of an Energy Park in Egbokor, Edo State.
The Board also signed an equity investment agreement with Eraskon Nigeria Ltd. for establishment of a lubricating oils blending plant in Gbarain, Bayelsa.
The Board, in a statement on Friday in Abuja, said that the investments would catalyse industrialisation and was expected to generate about 1,500 direct, indirect, and induced employment opportunities.
It said the investments would also have several other spin-off economic activities that would be developed where these projects are located.
According to the statement, the lubricating oils blending plant will be the first of such plant in Bayelsa and will have the capacity to produce 45,000 liters per day.
It added that it would also enhance the availability of engine oils, transmission fluids, grease and other products.
The statement noted that the NCDMB Executive Secretary, Simbi Wabote, signed the Shareholders Agreements and Share Subscription Agreements for the board at its liaison office in Abuja.
It said that Dr Akintoye Akindele, Managing Director of Duport Midstream Company and Mr Maxwell Oko, Managing Director of Erakson Nigeria Ltd equally signed for their firms.
“The investments are part of the approvals granted recently by the Board’s Governing Council chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva.
” The investments are coming under the Board’s commercial ventures programme and are in sync with the Board’s vision to serve as a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors,” Wabote said.
He further said that the Duport partnership was in furtherance of the Board’s strategy to enhance in-country value addition by supporting the establishment of processing facilities close to marginal or stranded hydrocarbon fields.
He stressed that the recent drastic drop in the prices of oil had made it imperative to have refining capacities to reduce if not eliminate cases of stranded oil cargoes without buyers.
Wabote underscored the emerging investment opportunity in developing capability and capacity in-country to maintain the various kits in the modular refinery on a sustainable basis.
“We do not want a situation where the modular refineries are folding up one after the other in a few years due to lack of technical support or inability to secure critical parts,” he explained.
He added that NCDMB had commenced discussions with some Original Equipment Manufacturers on how to domicile the fabrication and assembly of modular refineries in-country.
“Our strategy is to begin to claw back bits and pieces of the various components of the modular refinery until we fully domesticate the manufacturing of a large percentage of the kits in-country,” the NCDMB Executive Secretary said.
On the partnership with Eraskon, he pointed out that the blending facility had the capacity to be deployed for the production of other chemicals and reagents.
“The packaging section can also be used for generating additional incomes for the business and for creation of employment,” he said.
Wabote said the Board was excited at the prospects of these partnerships in jobs creation, value retention, petroleum products availability, utilisation of our abundant gas resources and in the development of in-country capability.
Also, Akindele conveyed the company’s readiness to partner NCDMB in the development of the energy park and assured that the project would add value to the nation’s natural resources.
According to him, it will create wealth and social amenities for communities.
He said that the Energy Park targeted creation of over 1000 jobs and impacting 10,000 families.
Akindele added that the modular refinery would produce a combination of Naphtha, diesel, kerosine and HFO, otherwise known as residual fuel oil.
He pledged the company’s commitment to exceed expectations, help increase government’s revenue, and reduce dependence on imported petroleum products.
Similarly, Oko noted that Eraskon was delighted to contribute to the industrial development of Bayelsa and the Niger Delta.
He said the company would benefit from operating from the same industrial corridor with Shell Gas Gathering Facility, Azikel Refinery and NCDMB projects at Polaku.
He promised that the company would be a good story of NCDMB partnership and the project would be completed in two years.